Skip to main content
Benefits5 minutes9 July 2026

What is Discretionary Housing Payment and how do you apply for one

Discretionary Housing Payments are not widely advertised, but they exist specifically to help people who are struggling to cover housing costs that benefits do not fully meet.

Ask Fin tools mentioned in this article

General information only. This article is for general information and educational purposes. It does not constitute financial, debt, benefits, tax, legal, or regulated advice. Information may change — always verify with official sources or a qualified adviser before acting.

If you are receiving Housing Benefit or the housing element of Universal Credit and there is a shortfall between what you receive and what your rent actually costs, a Discretionary Housing Payment, or DHP, is a form of financial support your local council can provide to help cover that gap.

DHPs are not automatically given and they are not a permanent entitlement. But they are a real and legal form of support that councils are funded to provide, and many people who would qualify never apply because they do not know DHPs exist.

Who can apply for a DHP

You can apply if you are already receiving Housing Benefit or the housing cost element of Universal Credit and you are facing a shortfall between your benefit and your rent. Common reasons for a shortfall include the bedroom tax (formally known as the spare room subsidy), the benefit cap reducing your overall payment, Local Housing Allowance rates that do not fully cover private rental costs in your area, or a temporary change in your circumstances that has created a temporary gap.

DHPs can also sometimes be used to help with rent deposits or advance rent if you need to move home and cannot cover these upfront costs.

How to apply

Applications go to your local council. Most councils have a DHP application form on their website, though some prefer applications by phone or in person. The form will ask about your income, your essential outgoings, your rent and the shortfall you are facing, and any particular circumstances that make covering the gap especially difficult. Being clear and specific about your situation, rather than keeping it brief, tends to produce better outcomes. Councils have discretion in how they assess applications, and context matters.

What happens after you apply

The council will assess your application and decide whether to award a payment, and if so, how much and for how long. DHPs are usually awarded for a fixed period rather than indefinitely. If your circumstances change, or the award period ends, you may need to reapply. If your application is refused, you can ask for a review of the decision.

DHPs do not affect your other benefits

A Discretionary Housing Payment is not counted as income for benefits purposes. Receiving one will not reduce your Housing Benefit, Universal Credit, or any other benefit you are entitled to. You do not need to declare it as income.

If you need help with an application, your local Citizens Advice office can assist, and many councils have welfare rights teams who can support you through the process at no cost.

Ask Fin provides general guidance only, not regulated financial or legal advice. Benefit rules can change. For personal advice on your situation, contact Citizens Advice or your local council welfare team.

Put this into practice

Benefits Checker inside Ask Fin

This article covers the theory. Ask Fin's Benefits Checker tool helps you apply it to your own situation — general guidance, not regulated advice.